Ch19
*focus on the definition
1. Price reductions to increase market share
a. Decrease price, increase market share.
2. Penetration pricing strategy
a. Coming in costing low then my competitors, 2nd to market.
3. Competitive pricing
a. Same price as competitors
4. Price quattions
a. List pricing, suggestive retail price
i. Reductions to list price (market price
1. Cash discount
a. Price reduction offering to a consumer, industrial user
b. 2/10 net 30
i. A common cash discount notation, allows consumers to
subtract 2% from the amount due if payment is made
within 10 days
2. Trade discount, discount for performing some services for us
(manufacture to retailer)
3. Qty discount
a. By 50 atm’s 10% discount
b. If you accumulate 10 atms throughout a period of time (1year)
then I’ll give you this discount now
c. Buy them all up front and I’ll give you a discount
d. Allowances
i. Trade-in
ii. Promotional allowances
e. Rebates
5. Pricing policy
a. What is pricing policy?
i. General guidelines based on pricing objectives
b. Psychological pricing
i. Goods and services made more appealing
c. Odd pricing
i. 499, not 500
d. Unit pricing
i. Gas by the gallon, fruit by the pound.
e. Product-line pricing
i. Value line and prestigious line.
f. Promotional pricing
